Ahmed bin Abdul-Nabi Macki, Oman's National Economy Minister and Deputy Chairman of the Financial Affairs and Energy Resources Council said the total expenditure approved in the amounts to RO. 3680 million. This exceed the annual expenses projected for 2004 by RO. 152 million (representing 4%).
The Minister said the share of the current expenditure of this rise amounts to RO. 98 million (representing 8%). This increase covers the periodical staff allowances and cost of promotion (due since 98 and 99).
According to ONA, Macki added in a press conference at the Finance Ministry Sunday that the expenditure includes the share of educational and health sectors which is RO. 627,6 million (representing 44% of the total current expenditure of the civil ministries showing a 12% increase over the allocation approved of the budget of 2004.) This is in addition to meeting of a government basic services, and operation services of ministries and government units.
He said the budget estimate also includes RO. 24,6 million to meet the social security cases (exceeding the budget of previous year by RO. 300,000).
In the field of investment expenditure, an RO. 330 million was allocated for development projects of civil ministries (within an increase of RO. 50 million over the expenditure estimated for 2004), such expenditure includes new projects planned to be implemented during this year, the Minister added.
He said in the area of supporting the private sector, RO. 66 million has been allocated for soft loans in the fields of agriculture and fisheries, industry, tourism and education. In addition support is also provided to the Oman Housing Bank and Oman Development Bank to cover the finance required for sewerage projects in Muscat and Salalah and other investments activities.
He added the agreement was been already reached for some additional projects. That will be append during the next few months. The most important projects are the Qurum–Al-Naseem Park road, for RO. 131,7 million, Dual carriage way of Al-A’amirat –Quraiyat for RO. 36 million.
Macki said the calculation of oil revenue for the year 2005 has been based on an average of $ 23 (this price $ 5 more than that assumed in the sixth five-year plan); and on the basis of the average daily production of 753 thousand barrel projected for companies. This is 203 thousand barrels less than the production estimated at 909 thousand barrel in the plan as a result of a decline in the production of Petroleum Development of Oman by about 215 thousand barrels daily, representing 25% of what was planned.
He noted that the government revenues of RO. 3140 million include oil revenues of RO. 2041 million (65%), gas revenues RO. 273 million (9%), current and capital revenues RO. 826 million (26%).